Payment Cards

Procurement and Payment Cards

Implementation

Procurement and Payment Cards are one of the most effective “Quick Win” tools to support Strategic Procurement and the transformation of performance.

Adoption as a procurement tool delivers the following key benefits:

  • Moves procurement’s focus from the transactional to strategic operation
  • Provides potential to spot aggregation opportunities.
  • Improved management information and reporting of the expenditure tail (up to 70% of transactions!)
  • Ability to agree “card only” payment and negotiate better deals
  • Automatic discount from some suppliers just for using Cards
  • Improved security of low and medium value spend
  • Improved procurement & finance system utilisation
  • Reduction in “0ne off” suppliers and invoices
  • Can be embedded in the procurement system for auto payment
  • Improved audit trail
  • Reduced fraud potential (easier to spot!)
  • 4 days payment to suppliers (by the card provider)
  • Better cash flow (you pay one monthly consolidated invoice)
  • Removal of Petty Cash and the necessity to carry large amounts of cash
  • Released administration time to allow people to focus on their “real job”.

We have implemented the following card systems:

  • Procurement Cards
  • Ghost / Lodged Cards
  • Security / Covert Cards
  • Travel and Expense Cards
  • Pre allocated value, budget cards for Grant funding (similar in operation to pre pay but more effective and secure).

The return on investment from Card programmes can be very swift providing clients with significant cost savings through efficiency improvement. The Head of Procurement at Surrey Police stated that:

“We engaged Redcap to push forward our Strategic Procurement activity; their input has enabled our Supplier Relationship Management programme and has launched our GPC operation, with targeted savings over 6 times the investment in the first year.”

Procurement Cards enable organisations to benefit from cost and efficiency savings in their purchase of requirements across the full portfolio of commodities. Redcap enables clients to derive maximum benefit from procurement card implementations.

Redcap operates as an independent consultancy providing advice free from commercial ties to Card Providers. Therefore we assist clients to make the best choice to meet their business needs when implementing or re-invigorating a procurement card programme.

Traditionally seen as a method of dealing with high volume, low value goods and services, more creative organisations are now using procurement cards for high value goods and services and embedding them within e-commerce solutions to provide an effective procure-to-pay process.

What We Do

  • Our consultant team includes experienced procurement card implementers from the public and private sectors. By using Redcap to assist with implementation or a re-invigoration project significant benefits can be swiftly realised.
  • Redcap has been credited as providing “the fastest public sector implementation of Government Procurement Card (GPC) for a Barclaycard Client – just 22 days”.
  • Our approach focuses on working closely with the client, recognising that procurement, finance and audit are involved with the implementation.
  • Whilst the card can be viewed as a payment tool, leading organisations additionally recognise its importance as part of their procurement strategy.

Who with…

Redcap team members have implemented, reinvigorated or advised on procurement and payment card programmes with the following organisations:

  • Emergency Services
  • Local Authorities
  • City Councils
  • Central Government Agencies
  • Buying Solutions
  • Centres of Excellence
  • SOPO

For an overview of our Card services click to download the  Procurement Card Brochure

For further information on how Redcap can assist you in the transformation of your procurement performance click here to contact us.